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MSS402087 Current

Application

This unit describes the skills and knowledge required to identify cost components in work practices and determine the broad cost impacts of alternative actions.
This unit applies to personnel who are required to identify and compare the costs of alternatives and apply this in making decisions within own scope of responsibility. Typically the decisions will contribute to efficient organisation of own work and/or improvement to production time and cycle times.
This unit applies to any organisation.
No licensing or certification requirements exist at the time of publication. Relevant legislation, industry standards and codes of practice within Australia must be applied.

What You'll Learn

1.

  • 1.1 Identify cost components in process, product or service in own work area
  • 1.2 Identify alternative actions and related cost components
  • 1.3 Identify impact of current and alternative actions on costs

2.

  • 2.1 Identify required production or process rate and major costs
  • 2.3 Relate identified costs factors to impact on overall cost of production or process
  • 2.4 Identify cost factors that are constraint to cost efficiency in own work area

3.

  • 3.1 Identify changes to improve cost efficiency
  • 3.3 Discuss changes with relevant people to identify positive and negative non-financial implications and determine acceptable negative impact
  • 3.4 Select actions which minimise overall costs within acceptable negative impact
  • 3.5 Monitor actions to ensure cost efficiency in own work area is maintained

Assessment Requirements

Performance Evidence

There must be evidence the candidate has completed the tasks outlined in the elements and performance criteria of this unit, and demonstrated the ability to:
• compare cost implications for at least 2 alternatives to a current process, product or service
• apply at least 1 cost-efficiency improvement in own work area.

Knowledge Evidence

There must be evidence the candidate has knowledge of:
• concepts of expense, income and capital
• relative impact of fixed and variable cost components relevant to own work, including:
• power and energy
• materials, plant and equipment
• production or process time, including impact of salary and wages
• administration and other support expenses
• government taxes and charges
• financial and non-financial impacts of cost reductions
• the difference between internally and externally controlled costs
• difference between overhead, labour and consumables.

Assessment Conditions

Skills must have been demonstrated in the workplace or in a simulated environment that reflects workplace conditions and contingencies. The following conditions must be met for this unit:
• use of suitable facilities, equipment and resources, including:
• sources of information in relation to cost factors
• modelling of industry operating conditions.
Assessors must satisfy the NVR/AQTF mandatory competency requirements for assessors.

Foundation Skills

  • {'skill': 'Foundation Skills', 'description': 'This section describes those language, literacy, numeracy and employment skills that are essential to performance but not explicit in the performance criteria.\n• Reading skills to interpret workplace documents to identify cost components\n• Oral communication skills to communicate about financial and non-financial impacts with relevant people\n• Numeracy skills to interpret and compare cost components.\nOther foundation skills essential to performance are explicit in the performance criteria of this unit.'}

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Last updated from training.gov.au: 07 April 2026